FPI inflows rebound in first fortnight of February on US-India trade deal to Rs. 19,675 crores

Foreign portfolio investors (FPIs) staged a sharp turnaround in early February, driving Indian equities by Rs. 19,675 crore in investments, supported by the US-India trade deal and easing global macro concerns.

According to data from depositories, the FPIA in January was Rs. 35,962 crore in December, Rs. 22,611 crore and in November Rs. The inflow comes on the back of three consecutive months of heavy selling, with 3,765 crore withdrawn.

Overall, in 2025, FPIs are expected to draw a net Rs. 1.66 lakh crore (USD 18.9 billion), marking one of the worst periods for foreign inflows. The sell-off was driven by volatile currency movements, global trade tensions, concerns over potential US tariffs and stretched equity valuations.

According to the data, FPIs this month (up to February 13) raised Rs. 19,675 crore has been invested.

Himanshu Srivastava, Principal Manager – Research, Morningstar Investment Research India, said the recent buying was supported by easing global macro concerns, particularly soft US inflation data, leading to positive sentiment towards the interest rate cycle, which helped stabilize bond yields and the US dollar.

This has improved risk appetite towards emerging markets including India.

Domestically, stable macro indicators, stable inflation and broadly in-line corporate earnings have bolstered confidence in India’s growth outlook, he added.

Echoing similar views, Angel One’s senior fundamental analyst Waqarjaved Khan said flows were triggered by the US-India trade deal, Union Budget 2026 supported with fiscal stimulus, easing global trade uncertainties and stable domestic rates.

FPIs were net buyers in seven of the eleven trading sessions till 13th in February, turning sellers on only four occasions. Despite this, data shows that FPIs so far this month have collected Rs. 1,374 crore net sale of equity.

On February 13, the Nifty fell by 336 points to Rs. 7,395 crore was marred by a sharp sell-off in the overall figure. Even amid the so-called “anthropic shock”, the week witnessed a heavy sell-off in IT stocks. VK Vijayakumar, chief investment strategist at Geojit Investments, said FPIs are likely to have aggressively offloaded IT stocks in the cash market as the IT index fell 8.2 per cent during the week ended February 13.